Correlation Between PARKEN Sport and HNI
Can any of the company-specific risk be diversified away by investing in both PARKEN Sport and HNI at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining PARKEN Sport and HNI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PARKEN Sport Entertainment and HNI Corporation, you can compare the effects of market volatilities on PARKEN Sport and HNI and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in PARKEN Sport with a short position of HNI. Check out your portfolio center. Please also check ongoing floating volatility patterns of PARKEN Sport and HNI.
Diversification Opportunities for PARKEN Sport and HNI
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PARKEN and HNI is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding PARKEN Sport Entertainment and HNI Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HNI Corporation and PARKEN Sport is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on PARKEN Sport Entertainment are associated (or correlated) with HNI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HNI Corporation has no effect on the direction of PARKEN Sport i.e., PARKEN Sport and HNI go up and down completely randomly.
Pair Corralation between PARKEN Sport and HNI
Assuming the 90 days horizon PARKEN Sport is expected to generate 57.05 times less return on investment than HNI. But when comparing it to its historical volatility, PARKEN Sport Entertainment is 1.37 times less risky than HNI. It trades about 0.01 of its potential returns per unit of risk. HNI Corporation is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 4,590 in HNI Corporation on August 31, 2024 and sell it today you would earn a total of 610.00 from holding HNI Corporation or generate 13.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PARKEN Sport Entertainment vs. HNI Corp.
Performance |
| Timeline |
| PARKEN Sport Enterta |
| HNI Corporation |
PARKEN Sport and HNI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PARKEN Sport and HNI
The main advantage of trading using opposite PARKEN Sport and HNI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PARKEN Sport position performs unexpectedly, HNI can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in HNI will offset losses from the drop in HNI's long position.| PARKEN Sport vs. PennantPark Investment | PARKEN Sport vs. Japan Tobacco | PARKEN Sport vs. BORR DRILLING NEW | PARKEN Sport vs. Virtus Investment Partners |
| HNI vs. Sabra Health Care | HNI vs. FEMALE HEALTH | HNI vs. Nucletron Electronic Aktiengesellschaft | HNI vs. YOOMA WELLNESS INC |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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